A U.S. Bankruptcy court judge has approved the sale of American Community Newspapers, including the local Sun suburban chain, to its lenders for $32 million.

Delaware Judge Kevin J. Carey's order was filed Wednesday, and completes a plan anticipated when ACN filed for bankruptcy April 28. The new owners, the Bank of Montreal and General Electric Capital Corp., were owed $136 million when ACN filed Chaper 11.

The creditors now compromise a new ownership entity known as "American Community Newspapers II." They had provided ACN with $5 million in additional financing to get through bankruptcy. It is unclear when the deal will close; ACN has not commented.

The deal effectively represents a 73 percent write-down of ACN's debt. For comparison, in the Star Tribune's bankruptcy, lenders are contemplating a write-down from $396 million to $100 million, a 75 percent cut, according a Teamsters pension fund.

Although the original filing contemplated an auction for ACN, no rival bidder emerged for the four-city chain, which also operates in the Dallas, D.C. and Columbus, Ohio markets. The company has repeatedly stated the bankruptcy would not affect its daily operations, though they've cut local papers and staff amid a general industry decline.

The purchase agreement leaves open the retention of key executives, including Chairman, CEO and President Gene Carr. Should Carr's employment contract not be picked up, he would receive $450,000 plus a year's worth of benefits.